Chennai: The 15th Finance Commission has reaffirmed that it will not penalise performing states like Tamil Nadu while allocating funds and that it would ensure “even handed approach”.
The assurance by the chairman of Finance Commission Dr N.K. Singh came on Wednesday during his visit to the city for a consultative meeting with political parties, industry, economic experts here, ahead of the commission’s meeting with the state government on Thursday.
Expressing concern over the Finance Commission’s recommendation to use the 2011 census for allocation of union tax revenue instead of 1971 census, the parties submitted that the move would severely affect Tamil Nadu which has made rapid progress in population control in the last 40 years. All major national and regional parties which attended the Finance Commission’s third consultation with leading economists of the region here, urged the commission not to penalise the performing states like Tamil Nadu. Responding, the Chairman reaffirmed Commission’s “even handed approach vis a vis states and the centre.”
The meet was attended by 11 eminent economists and domain experts. Tamil Nadu is the second state in Southern India after Kerala to be visited by the Fifteenth Finance Commission from September 5 to 8. Led by chairman N.K. Singh, the commission’s members – Dr Anoop Singh, Dr. Ashok Lahiri, Dr. Ramesh Chand and secretary Arvind Mehta along with other officials - participated in the meeting. They would meet Chief Minister Edappadi K. Palaniswami, ministers and other officials of the state here on Thursday. Detailed presentations will be made on the finances of the state government.
Ahead of meeting with the CM, the commission met representatives to understand the macro economic issues and some peculiar issues related to southern part of the country in the light of the development trajectory of the region.
Inter-district disparities, unplanned urbanisation and resulting migration, disparity in funds flow between rural and urban local bodies, were among the key issues that emerged to the fore during the meeting here. Issue pertaining to Centrally sponsored schemes and revival of local water bodies through water technologies for better water management, too, dominated the meeting. Industry representatives raised issues related to land acquisition, water availability for industry and agriculture and grid development for green energy.
“The commission was greatly enriched by the interaction and the discussions with domain experts and economists in understanding some necessary assumptions which are necessary for the Commission to come up with appropriate recommendation,” said chairman finance commission Dr N.K. Singh.
